Data centers for AI could nearly triple San Jose’s energy use. Who foots the bill?

Data centers for AI are putting pressure on California's electric grid, especially in San Jose, the heart of Silicon Valley. PG&E estimates San Jose's electricity use could nearly triple due to data center development. This is forcing grid upgrades, raising questions about who pays for them and whether the state can keep the power clean. Regulators and utilities are struggling to forecast data center growth and power needs, as AI applications are rapidly evolving. The Public Advocates Office warns ratepayers could end up paying for unneeded infrastructure. Local officials are reluctant to procure more power until they know which projects will be built. California's data center boom also raises environmental concerns around water use, emissions, and air pollution. Attempts to increase transparency have faced industry opposition, leaving communities unprotected. The surge in data centers could slow California's clean energy transition if it keeps the state tied to natural gas. Experts argue the state will need options like nuclear, carbon capture, and more "clean firm" power to meet the demand.